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Economic News A 16-day partial government shutdown temporarily closed the Census and Commerce Department websites last month, delaying September reports on the construction and housing markets and rousing concern over the government's stability. Lawmakers ultimately agreed to a deal that increased the federal borrowing limit and re-opened the government through early 2014, but the short-term fix does little to address the long-term spending and solvency problems in Washington. Trade organizations widely denounced the shutdown and the government's inability to get their house in order. "Like most Americans, AIA members are extremely disillusioned with the current state of affairs in the nation's capital," said American Institute of Architects' President Mickey Jacob, FAIA. "The design and construction indus- -33% try is slowly recovering from one of the worst economic crises in modern history. The last thing we need is the self-inflicted wound that can potentially further damage the economy." +10.7% About 939,000 homes in the U.S. were in some stage of fore- Existing-home sales in September reached a seasonally adjusted annual closure as of August 2013, compared to 1.4 million in August rate of 5.29 million units, 10.7 percent above the 4.78 million2012, a 33 percent decrease of the "shadow unit pace in September 2012. Month-over-month, sales declined inventory" of distressed homes. August was the 22nd 1.9 percent from a downwardly revised 5.39 million in August. Limited consecutive month of year-over-year decline, inventory continues to push home prices upward, reducing affordability to and total shadow inventory has declined by double a four-year low and threatening future home sales. digits for 10 consecutive months YoY. Source: National Assn. of Realtors Source: National Assn. of Homebuilders/First American 55 Builder confdence in the single-family housing market reached a four-month low in October, falling two points to 55 from a downwardly revised September reading. "A spike in mortgage interest rates, along with the paralysis in Washington that led to the government shutdown and uncertainty regarding the nation's debt limit, have caused builders and consumers to take pause," said NAHB Chief Economist David Crowe. The index has registered a positive (50+) rating since June. Source: National Assn. of Homebuilders/Wells Fargo 52 Only 52 housing markets out of about 350 metro areas nationwide have returned to or exceeded pre-recessionary levels of activity, according to the inaugural NAHB Leading Markets Index (LMI). The index's nationwide score of .85 indicates that, based on current permits, prices and employment data, the nationwide housing market is running at 85 percent of normal activity. Source: National Assn. of Homebuilders/First American November 2013 11